According to ChainCatcher, Goldman Sachs stated that when the Bank of Japan decides to reduce its ETF holdings in the future, it will choose to gradually sell these ETFs in the market, rather than transferring them to the government as some have suggested. Since 2010, as part of its ultra-loose monetary policy to revive the sluggish economy, the Bank of Japan began purchasing ETFs, a move that continued for 13 years. Although the Bank of Japan stopped buying ETFs last year, it has not yet announced when and how it will dispose of its approximately 37 trillion yen (about $252 billion) in ETF assets, which have a market value of around 70 trillion yen.
The Bank of Japan previously stated that when deciding to reduce these assets, it would adhere to three principles: selling at appropriate prices, avoiding losses for the central bank, and selling with minimal market disruption. Goldman Sachs noted that a method that could meet these three conditions might be to sell small amounts gradually in the open market.
